EQUITY

6 Months Ended

Dec. 31, 2017

Warrants

EQUITY

	Restricted Stock Units			Weighted Average Grant Date Fair Value ($/share)
Outstanding at June 30, 2017		982,613		$	6.01
Granted		9,897			12.12
Vested and issued		(95,201	)		7.21
Forfeited		(13,669	)		11.89
Outstanding at December 31, 2017		883,640		$	5.86

 The number of restricted stock units outstanding at December 31, 2017 included 3,380 units that have vested but for which shares of common stock had not yet been issued pursuant to the terms of the agreement.

As of December 31, 2017, there was approximately $5.2MM of unrecognized stock-based compensation expense under our equity compensation plans, which is expected to be recognized on a straight-line basis over a weighted average period of 4.5 years.

Warrants

 The following tables summarize information about warrants outstanding and exercisable at December 31, 2017: 

		Warrants Outstanding at December 31, 2017						Warrants Exercisable at December 31, 2017
Range of exercise prices		Number Outstanding		Weighted average remaining contractual life (years)		Weighted average exercise price		Number exercisable		Weighted average exercise price
$	3.45 – 4.00		1,271,618		1.82	$	3.94		1,271,618	$	3.94
$	6.45 – 10.00		100,481		.99	$	7.29		100,481	$	7.29
			1,372,099		1.76	$	4.18		1,372,099	$	4.18

Preferred Stock

The Company’s certificate of incorporation currently authorizes the issuance of up to 30,000,000 shares of ‘blank check’ preferred stock with designations, rights, and preferences as may be determined from time to time by the Company’s Board of Directors, of which 700,000 shares are currently designated as Series B Preferred Stock (“Series B Preferred”) and 550,000 shares are designated as Series B-1 Preferred Stock (“Series B-1 Preferred”). As of December 31, 2017, a total of 625,375 shares of Series B Preferred and 305,859 shares of Series B-1 Preferred were issued and outstanding. Both classes of Series B Preferred Stock pay dividends at a rate of 7% per annum if paid by the Company in cash, or 9% if paid by the Company in additional shares of Series B Preferred (“PIK Shares”), the Company may elect to pay accrued dividends on outstanding shares of Series B Preferred in either cash or by the issuance of PIK Shares.

In July 2017, the Company issued 20,000 shares of Series B-1 Preferred in satisfaction of an accrued bonus payable to the Company’s Chief Executive Officer. Management believes the Series B-1 Preferred favorably impacts the Company’s overall cost of capital in that it is (i) is perpetual and, therefore, an equity instrument that positively impacts the Company’s coverage ratios; (ii) posesses a below-market dividend rate relative to similar instruments; (iii) offers the flexibility of a paid-in-kind (PIK) payment option; and (iv) is without covenants. After exploring alternative options for redeeming the Series B-1 Preferred, management determined that alternative financing options were materially more expensive, or would impair the Company’s net cash position, which management believes could cause customer concerns and negatively impact the Company’s ability to attract new business.